Capital gains tax on site transfer

[dany]

My father and uncle are planning on transferring a site to me to build my home. After a lot of revenue website reading I thought that my father would not be liable for CGT on his half because of the transfer between father and daughter as the site is less than 1 acre and my uncle would be. My solicitor has just emailed me to say someone told her than both my father and uncle will be liable.

Can anyone shed some light on this for me please? Does the exemption not apply if the father doesn't own the full site?

 

[Joe_90]

Would they get retirement relief?

 

[Dr.Debt]

You are correct. Your Solicitor is wrong...Your father is entitled to transfer such a site to his daughter without payment of CGT. Your Uncle will be subject to normal capital gains tax rules. You may also be liable for stamp duty and Capital Aquisitions Tax (CAT) on the gift from your Uncle. Any CAT payable can be offset aginst any CGT tax payable by your Uncle.

 

[T McGibney]

The OP and their father & uncle need proper professional advice here in order to ensure that the parent-to-child site transfer cgt exemption applies where the site is only partly owned by the parent, and to cover all other angles. If the solicitor is not a tax expert and/or is relying on secondhand advice, then there is no point in relying on their advice on potentially complex tax matters.
Best of luck with it.

 

[Bronte]

My solicitor has just emailed me to say someone told her .

This is not good.

This kind of transaction should be a common enough occurance and your solicitor should know whether CGT is due or not, and if she's not clear on it, she should get proper advice on it, instead of 'somebody told her'.